TMI Blog2018 (4) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... , MEMBER (TECHNICAL) Appearance Shri V. Sridharan, Sr. Advocate with Shri Vinay Jain, CA for Appellant Shri Shri M.K. Sarangi, Jt. Commr. (A.R) for respondent Per : Ramesh Nair Brief facts of the case are that the Appellant were receiving raw material i.e. iron ore at Revanda Port Alibaug from Vizag port through foreign vessel on coastal run. The cost of such transportation is borne by the Appellant and the vessels were hired from foreign shipping company. They were issued show cause notice demanding service tax on the ground that the contract between the Appellant and the owner of different vessels was meant for transportation of coastal goods. That scrutiny of the agreement i.e Time Charter it emerges that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalties u/s 76,77 and 78. The demands were confirmed by the adjudicating authority alongwith interest and penalty. Hence the present appeal. 2. Shri V. Sridharan, Sr. Advocate alongwith Shri Vinay Jain, CA appearing for the revenue submits that the demand has been illegally confirmed. He submits that the transportation of goods owned by them were under time charter party agreements which envisages that the control and possession of the vessels remain with the owners of the vessels and is not transferred to the Appellants. The contract of the owners of the vessel with Appellant is for provision of service of transportation of goods by sea using the dedicated vessel and the services of the crew of the owners; the remuneration for transport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axable category STGU does not arise. The onus is on department to prove. The reliance placed upon the statement dt. 04.01.2011 of Shri Pradeep Gokhru of Appellant concern recorded to arrive at conclusion that vessels are hired under hiring contract is erroneous. The question involved is of interpretation of law and the reliance placed upon statement is erroneous. He submits that no service tax is payable under the category of STGU for the entire period. The time charter party arrangement is a contract for transportation and the charter hire is a composite payment for the service of transportation of goods. The true commercial nature of contract is to be determined. He also takes us through the elaborate material on the nature of various cat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Shri M.K. Sarangi, ld. Jont Commissioner (AR) appearing for the revenue supports the impugned order and submits that the service in question is of Supply of Tangible goods for use services. He also submits that the Appellant is not eligible for credit of tax paid. He relies upon the following orders : (i) Greatship (India) Ltd. 2015 (37) STR 533 (TRI) (ii) Business Aviation Association For India 2011 (24) STR 22 (DEL) (iii) Petronet LNG Ltd. 2016 (46) STR 513 (TRI) (iv) Global Vectra Helicorp Ltd. 2016 (42) STR 118 (TRI) (v) Mahindra Mahindra Ltd. 2005 TIOL - -01- SC CX LB (vi) Dharampal Prem Chand Ltd. 2011 (265) ELT 81 (TRI) (vii) Crompton Greaves Ltd. 2004 (177) ELT 1032 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
